CHINA: "*PBOC PAN: TO STRENGTHEN THE ROLE OF POLICY INTEREST RATES
"*PBOC PAN: TO STRENGTHEN THE ROLE OF POLICY INTEREST RATES *PBOC PAN: TO FURTHER REFINE POLICY RATE...
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AUD: Antipodean Update
The antipodeans have both opened the week on the front foot building on the move seen on Friday. The US dollar traded heavily playing catch up to the surge higher in risk and this has seen the pair move back toward the tops of recent ranges. Will these continue to contain the move or will they break, a short NZD market in particular would be watching this 0.5900-0.5925 area with keen interest.
- {AUDUSD Curncy} - 0.7093,+0.13%
- {NZDUSD Curncy} - 0.5905, +0.20%
- {AUDNZD Curncy} - 1.2012, -0.10%
CHINA: PBOC Injects CNY198.5bn via O/N During OMO
The PBOC injected liquidity through overnight reverse repos on Friday, its first such operation in the middle of a month. The operation resulted in a net injection of CNY348bn into the banking system, and China's 10-year government bond yield fell to 1.68%, its lowest level since July 2025.
The PBOC will auction two batches of treasury deposits at commercial banks on behalf of the Ministry of Finance on Aug. 19, according to two PBOC statements.
- The PBOC Issued CN0 bn of 7-day reverse repo at 1.4% during this morning's operations.
- The PBOC issued CNY565.5 bn O/N reverse repo
- Total maturities today CN0Ybn and CNY349bn O/N
- Net Liquidity injection CNY198.5bn.
- The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
- The CFETS Daily Pledged Repo DR007 Wgtd Rate's last close was 1.3858%.
- The China overnight interbank repo rate is at 1.3518%, from the prior close of 1.3458%.
- The China 7-day interbank repo rate's last close was 1.3800%
- The 2-Yr NDIRS is at 1.3950% having closed last at 1.3950%.
NEW ZEALAND: July Card Spending Above Q2 Average, Fuel Prices Add To Volatility
While the monthly change in NZ card spending has been volatile, the annual rate in July was above the Q2 average, although it has been moving in a range since February. Retail transactions rose 1.3% m/m to be up 3.0% y/y after -1.3% m/m & +1.4% y/y in June and 2.3% y/y in Q2. While retail expenditure has improved in 2026 despite higher fuel prices, growth is moderate.
- Total card spending rose 1.0% m/m to be up 2.8% y/y up from June’s 2.0% and Q2’s 2.5%. Non-retail rose 0.7% m/m while services fell 1.4%.
- Core retail was stronger than headline up 2.2% m/m & 3.1% y/y with hospitality +3.2% m/m, durables +2.5%, apparel +3.2% and consumables +1.0%.
- Fuel was down 4.3% m/m as prices were 5.7% m/m lower for petrol and 12.1% for diesel. Price fluctuations driven by Middle East developments have also impacted transaction data as it is nominal.
- Q2 real retail sales print on 24 August. They printed their sixth consecutive rise in Q1 to be up 4.5% y/y.
NZ card spending y/y%
Source: MNI - Market News/LSEG
